tv Fast Money Halftime Report CNBC November 7, 2019 12:00pm-1:00pm EST
populated areas that are going to make food exclusively for delivery. saudi arabia's foreign wealth fund, a big uber backer, has invested $400 million into the new venture valuing his latest start-up at about $5 billion. get ready for disney tonight. we'll learn a lot. let's get to the judge. >> carl, thanks. i'm scott walker front and center this hour, the record setting morning. more questions about where your money will go over the last months of the year. >> higher highs, but beer's about froth. what investors do from here. disney reports earnings after the bell. the trade ahead of the numbers. twitter tumbling on a down jagr. wiping out nearly all its gains for the year. it's our call of the day. investment committee is ready to go. "halftime report" starts right now. ♪
>> welcome. good to have you with us on this thursday. our investment committee on the table, jim, steve, michael is back. we begin with surge, s&p and dow hitting fresh highs today. trade the reason. reports say the u.s. and china agreeing to roll back some tariffs in phases, doesn't take much to get stocks climbing. jim, we've been asking all week if there's a green light for this seven-week surge into the end of the year. we're higher today, what do you think? >> i think there is a green light. what we were worried about yesterday was somebody not wearing the right shoes for when the meeting was going to happen. obviously that's yaeesterday's news. today there's talk that the tariffs may be rolled back and the market support in the is still i market that teeters whoon happens wi on what happens with trade. but we're still waiting for that euphoria phase. i don't think we get that this
year i think that's something where the stars have to align in 2020. more on trade. more benign politics. these are big asks and reaches. if you get those then you'll get the euphoric phase. >> he says green light, wells fargo says yellow light. we're confused about near term market direction. bottom line, we do not recommend putting new money to work at these levels. successfully timing a meltdown call is right. >> what if that call was in 1996, you would have sat out from 96 to '99. when you have fund flows, 350 billion have gone into bonds, etf and bonds this year, 150 billion has come out of equity, funds in etfs this year weren't even close to that euphoria and there's still so much negative sentiment, i think it's tough to
make out a call not to invest in the market. >> what if it was a year ago, though been a good call. last december sucked. >> yeah. getting people out ahead of it. >> opportunistic ahead of still an unknown. we don't know what's going to happen. >> back to what we always say, scott, regarding a tweet versus messaging from the chinese. in this case china global times editor who put this out and said basically, you know, that there is hope and that they believe moving forward and both sides rolling back tariffs is going to be a sign of good faith. and it appears that that olive branch, whether it was offered by our side to them or them to us, was reported by them. that's why i'm saying people are reacting so fiercely to that news right now because it's still not a signature and it's only a phase one, scott. but nonetheless, that could be good for another 1.5, 2% to the
upside. >> wells fargo still says sentiment's not turned bullish enough to force them to want to put money to work in the market. >> look, i mean, they're right in terms of confusion out there. because there is confusion out there. but markets go up when there's confusion. when market's convinced that -- >> the wall of worry. >> yeah. there's always a wall of worry for every market. so, look, i'm uncomfortably high with my position. it's the longest exposure i've had andin i really don't remembr when. i've been fortunate i've avoided in terms of the major pain for every selloff. i'm going to avoid it this time but now's not the time to exit. what i have been saying is that we're in a trading range, the upper end of the trading range. i believe that range has now broken through. i don't believe that the old highs are support level. i just think we have a wider trading range and seasonally can trade up through the end of the year. but, it all does depend on trade. but if we get trade side, even
the first phase of it, then we get the hand off to the seasonal trade. i also believe the market is moving up because we've seen a steepening in the yield curve, which the markets are reading, the investors are reading as saying that this economy, this global economy, is improving. so that's also helping the market. >> that's what bfa says today. what matters more than anything else, michael farr, rates. exactly what stevewise weiss. >> you can't argue with steve weiss. >> we don't have three hours. >> michael is now a permanent member of the team. >> look, these calls make me absolutely crazy. i don't know how a bank the size of wells fargo in good faith can come forward and put on a yellow light based on their market call like this. look, it's perfectly legitimate for them to come in and say, valuations are full. we think that the upside from this point is limited. but to tell investors and
unsophisticated people or fred and ethel out there are thinking about their retirement that maybe they shouldn't have money in the market right now, that's crazy. >> they're not saying like sell everything you have. >> no, no. >> they're just saying putting fresh money to work. why isn't that a reasonable position to take we've had a great year, right? we had a great year. >> i understand that stocks are at all-time highs. and i think you have to be very cautious. but that means you do your homework. and that means you know what you own and you find some of the stuff that hasn't done very well and you invest with some discipline. but trying to trade in and out of the market if you're a long-term investor thinking about your retirement and you're children's education, all of those other things, i think that it is a fool's game and think you're more likely to get burned than be successful. >> so, look, bmo -- >> makes me mad. i don't like that stuff. >> brian, bmo capital markets. he's been largely bullish, okay. i'm not saying he's wavering in any way, but he drops a note that peeked my interesting
today. he says, quote, despite these new highs, the market is still less than 5% above it's september 28th peek given the lingering uncertainty on strayed, we do not see u.s. stocks soaring higher before a trading range before year-end. >> but year-end is only six weeks from now. >> right. this is seasonally what's supposed to be a good period. if you think that trade has gotten better, if you think that earnings are going to get better, if you think that the economy has troughed -- >> seasonal -- >> -- why wouldn't you think you can get a run into the end of the year you've got someone who's largely bullish saying we don't see it. don't put fresh money to work because we're not ready to buy into it yet. >> i think these analysts have a job and every day they have po put something out. it's a slow news day and they have to put something out. i'm not sure their hearts are in it because we are in a
seasonally strong period. steve said it, squocott, you sad it. >> that's a guarantee we're going 3,300? >> guarantee is almost an illegal word in this business. >> sounds like you're trying to make a case for the guarantee? >> it is an illegal word. >> it is an illegal word. but i will make a strong case that we do rally into year-end. are you going to have a euphoric pa parabalance li parabolic stage? i doubt it. the third quarter earnings was pretty punk. but the guidance going forward wasn't bad. people are looking at 10% earnings growth q4 over this year. >> could we get another 50 s&p points between now and the end of the year? >> that seems like a reach. but could you get another 75, another hundred? yeah. and you know what? we should be happy for that. >> ls a feel for a euphoric
rally in place. in the "wall street journal" said saying we have 3.4 or $3.5 trillion on the sidelines. >> which we discussed. >> we discussed yesterday, trillion dollars that's been added to money market funds over the last three years. when you see that much cash, you get a trade deal from china and the nafta news which is more important, what's going on in nafta right now than maybe what's going on in china. >> the usmca rrk the passage of that. >> that actually -- >> the chances of that happening slim and none. slim just left. >> actually in washington i'm hearing that that is actually making progress on capitol hill and nobody's talking about it much. but that does look like it's actually making progress. but, there is fuel there that with a little bit of encouragement, price cos jump. y price cos jump. you can it could happen. >> we have transports hitting a new high. up almost 19% on the year right
now. dow jones transportation average. that's providing a signal for a lot of folks that isn't a yellow light. that's providing a green light for a lot of folks. and when you've got other economies around the world getting a little bit better here and there, germany, their rates are the highest they've been in months. i'm not cheering for higher rates, but what i am saying is when german ten-year rates were down at -- >> you should be cheering for higher rates, that's a good thing. >> it is. >> rates have gotten off the mat. that's one of the reasons that maybe we feel better before about where we are. >> true. and to steve's point about the steepening of the yield curve, that's because that has come at that ten-year. ten years have moved up dramatically. >> since july -- >> yes. >> how much do we like banks right now? i mean, look, and we're talking about what can move the market higher. of course we're going to talk about technology, that's going it move hire. but some of the sectors that have been left for dead and banks for the last year and a half were left for dead, now
you're seeing trow performance from the money center banks, investigate mnt banks investment banks. this is important to draw more money in as well. >> but i think also the big move that's happened is overseas when you see german boones hit a trough of negative 70 basis points, i think they're negative 24. that's been a healthy move because that's clearly not good to have full bond market negative yields. but also going back to the original yellow light, we put client capital to work, we run a wealth management business. we have new clients onboarding, i think lump-sum investing is hard hard to do and dangerous do. it's a dollar cost average. that's what most people do when they invest and they have cash, we're going to put some money to work now, we'll put a time period, invest that money over the next six months, 12 months, take advantage of those opportunities. i think that's where we're on the same page. >> absolutely. >> about that, that comment
about don't put money to work, it's not binary. investing is so nuanced. i think most people would say let's dollar-cost average and take advantage, but not try to time the market because that's a fool's errand. >> i agree that it always pays to be thofs foc-- to focus on y it's dangerous to try to time a market selloff or try to time anything in the market. you need that strategy. i don't have to be invest and keep putting capital work there. i can put capital to work anywhere i want. but i look at the equity market is the best place to be in the short-term. i wouldn't be surprised if rates came down again or are expected. >> on that note, though, they're worried about just getting too optimistic they upgraded the banks in september, they favored low volatility exposure, okay. those things are working they say typically when everything is going right, it's about to go wrong. >> i'm not criticizing but i
still think there's enough of wall worry, as we started out saying, where it's not -- i don't think you'd need euphoria for the market to sell off. there are plenty of issues out there without euphoria. there's elizabeth warren, but that's not for six months or so. that's not going to be real factor until then. take that off the table. people like to talk about that, it's not on the table for six months. we don't know who's going to be the nominee or who's going to win. who do you have? the only thing you have right now, the feds off the table is china trade, period. >> you can say it's good it's off the table, right >> that's a huge difference this year versus last. >> we weren't prepared for the fed to be off the table. >> by the way, off the table should mean we're not getting another cut. i'm not sure the market is really poised for that. >> but maybe it's coming around to that point of view, j. powell for all. >> the pmis globally have bottomed. china is getting better, u.s. is getting better. >> rates moving up would suggest
that the feds got it right. >> absolutely. >> let's pat them on the back skblnda t >> and the economy is improving. >>ed there be no reason to have the foot on the cut from here to eternity. >> we're still high enough in rates where we're going to see equity come out of the market to go into those yield bearing interests. >> before i mentioned this money on the side language -- >> i don't think that comes back. >> what gets it back >> one of two things. >> phase two or phase three. >> sorry. >> one of two things. market corrects 10%, that emergency come in. and then there's the euphoric trade. >> you told me we weren't going to correct that debt. you said we have a green light. >> no, no. this is what money managers do. and, to me, experienced money managers will look at you and say i have no damned idea what this market's going to do over the next month, six mopnths or year. i truly don't. >> do you feel the environment is right for a move higher between now and the end of the year to 3% or 4% >> i could see thousand could
happen. i would see how we could be down 10% by the end of the year too. >> what's the problem, you like everybody else deals with probability. what's the probability that that's going to happen >> the path of least resistance, if my opinion, is higher. >> all right. >> i mean, this market, in spite of all of the short-term corrections and bad pieces of news where we have these down 300 point days, it's marched higher over the last ten months. >> if the path of least resistance is higher do you need the kind of money that farr is talking about to come into the market to push it there? >> no. >> so when you have -- going back in time, when was the business week article 1982, the death of equities? and so if you look at 1982 to 1999, the s&p averaged 18% per year for 17 years. but from a fund flow perspective, 90% of the money came in from 1996 to 1999. and so how many people actually experienced that 17-year run very, very few. so i think it's a very good question, what's it going to take
i think ultimately you have that fear of missing out, you have -- but you also have if you look at the target date funds, right you have more and more retired investors. i think there's close to a trillion dollars in these target date funds. there are naturally clients without investors going more and more conservative for the baby boomers 'the that money won't be coming back unless they move out of the target date funds and go into equity funds. >> we talked about the banks working, if this money comes in, if we're going to get higher where do you want to be within this market. banks have been a place to be. here's a provocative thought today. is energy about to go from worse to the first >> can't go from worse to the worst. >> because of all of things that we just said >> it sure could. kudos to ed for that. as soon as i saw that, scott, i was bobbing my head saying i think he's right here. i don't know when that dramatic turn happens, but all the way leap frocking and going frogging
to first. one of the rooeasons is growth. if we've got a trade deal in the making, phase one, phase two, phase three, i think that's going dob hu going to be huge for fossil fuels and they're going to do exceedingly well. >> the point is what case john is making, you need those things. >> you do. those have been against it up until now, which is why it's been worst. >> that's right. if the saudis have their way, yes, energy will be the best play. the question is how do they line up the saudis can cut back a lot of production that's not going to make trump happy at all. it wouldn't make anybody happy, right some particularly with the spice they caught on twitter. but that's what has to happen. i don't think any other member of opec is looking to cut back production. i don't think the u.s. is. to me, energy will be a
speculative trade that's very, very difficult to figure out. i'd rather buy companies that get beaten up, that get taken out to the wood shed and shot like a fedex, like an adoke by. >> you to know what's speculative is the timing of this. i think dan is right, i read his letter this morning. >> it will go up, no doubt. >> the question is when. here's how you play that. if you a strong feeling that right now for whatever reason saudi spies, the saudi ram koco, whatever it have you buy the higher bigger names. hold on. i'm saying i don't know when this is coming i know it's coming, i don't know when. so i'm being a little bit more conservative. things with high yields, royal dutch shelf or petroleum, they sell at a lower price. meaning i'm fine, i'm not worried about them going down and i get paid while i wait. that makes sense to me.
>> okay. schlumberger. >> so our discipline said they can't meet the earnings growth that we require so so they had to go. >> what about energy. >> we ask the fund manager from houston, texas. >> yeah. i think there's going to be for those who aren't focussed on what's happening in energy, there's a short-term tailwind as, you know, saudis looking to ipo or ramco which won't affect us here. but they're asking the other opec members to cut back on production. so that could be a short-term tailwind there. we like to play the top line mineral right companies and the highway, the pipeline companies. but definitely we want to it go go from worse to less worse. it has been a painful trade. we like these companies that have high cash flow. but think it's not worse to the
best, i think it's worse to less worse because there's so much negative sentiment. and what makes stocks go higher are people buying them and there's still more searles of energy than buyers. >> you have to believe if energy is going to catch this wave from better feel of the trade and global economy, you have to believe that other value oriented sec tures are tors are right? what's more attractive right now, industrials or energy >> i think given the soft stuff, we'd call that if it were another ipo coming out, we'd call it channel stuffing. that's what the saudis are looking to do. i think the soft is that. i look at united rentals, which i own, i never expect that stocktor back stocktor stoc to be back at one 50. >> or cat pillar. but this is what i'm doing.
i did add yesterday, because i thought it was -- i don't know, i just didn't think that he was the definitive word on trade. i added to ababa and aluminum today, it was down yesterday, down today, and added to the smh. adobe, i added just a little more to adobe. i'm not going to stay there too long because i can't justify the valuations on it. but i think so many people sold it it got negative. i can mention one more thing >> of course. >> what's hurting me more in the portfolio, i don't have a lot of them, i've only got two of them are my yield plays. those are stealth but they've been coming down as rates have moved up. you look at crown castle, you take a look at others, they took on gas. i haven't sold them, but i am concerned about that sector of the market. >> smu, down 2% today, falling like a stone. and that's one of those plays,
of course, because the utility -- i'm sorry, utility spider. but that one under some severe pressure as the rates are going the other way sbh what is everybody doing with their disney positions >> everybody on the desk owns it except for jim. >> right. >> what do we do here ahead of the numbers today after the bell >> i think everyone in general is not just on this desk is long di disney. there's a lot of excitement, including ourselves. >> but some of the excitement has been sort of -- >> i have no -- i worry about it. >> what makes me a little bit nervous is everybody's long disney. so i think that this quarter will be less relevant in terms of big events. you know, november 12th hits disney plus and then i think over the following few quarters to see how many people actually sign up, right because that's what took the stock from 110 to the 130s, they have to now execute on that and probably overexecute. i think it's --
>> is that far too high? you said they have to overexecute. that's a tough position to be in as a shareholder. >> i'm worried about it. it hasn't acted well. >> that's my point. >> it hasn't acted well. it's a fairly small position for me. what we'll see this quarter is we'll see the costs from the launch, but we're not going to see obviously any subscriptions. so i believe the market will give them a pass because they just launched. so you've got -- you don't have any data there. so if you didn't give them a pass before you'll give it to them now. so unless they surprise me otherwise, the stock will be about where it is. >> how about this comment from reed hastings, don't look at sub -- >> that's a great book. >> always is. don't look at subscriber numbers to track competition. is he just trying to set the table like dial back your expectations he knows disney plus is here, he knows apple plus whatever they call it is here.
you've g . >> you've got a company in disney with a great balance sheet, fundamental business, great earnings potion potentien those numbers be bumpy sure. from my perspective as a long-term guy, five years from now i'm owning disney at this price with this dividend, i'm here for the ride. i have no idea what it's going to do between now and -- >> i don't know about five years because iger won't be there in five years and he's one of the reasons i own it. >> i can change, but right now i'm very happy to hold it. >> i hear you. >> stock's up 10% in four years. where four years tag was in the low 20s. what's changed now they have disney plus. all of the other positives from four years ago, the movie studios in particular are there. i think it's going to be a good quarter. and bryn you said this, i own cvs and viacom, i own that for a specific reason, but i think i might be wrong not to own
disney. >> just as brynn said yesterday talking about disney, you write it, you sell calls against it. because do i think it's just going to explode to the upside i'm long calls in here. i think -- and it's working again today, i think it's going to perform to the upside. i don't know if it's going to pop through 140 to the upside here. i think maybe we see a move over 135, which will be great for the calls i've got. and for the ones she's written against the stock that she owns, again, i don't know which ones those are, but that will just suck all the premium out of those. >> we're going to take a quick break. i'm just looking at shares of roku, ooh. they're down about12%. we'll take a break and find out what jim is doing with anything with roku today. here's what else is coming up. the twitter trade. six years as a public company to date. shares selling off nearly 30% in the last month. and one firm slaps a settle rating on it. how should you play the stock in
the desk debates in call of the day. plus, more trades for you in unusual activity. john is tracking the activity in the options market straight ahd.ea the "halftime report" with scott wapner and the traders is back in two minutes. does your broker offer more than just free trades? fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity. there are zero reasons to invest anywhere else. are all non-gmo, sundown vitamins made with naturally sourced colors and flavors and are gluten & dairy free. they're all clean all the time. even if sometimes we're not.
. ♪ welcome back, everyone. i'm sue herera. here's your cnbc update at this hour. a foreign policy aide to vice president pence is testifying in the house impeachment inquiry. jennifer williams arriving on capitol hill this morning. she is the first person from the vice president's office to testify in the proceedings. a russian military convoy arriving at a former u.s. military base in syria. more than 40 russian armored vehicles and trucks loaded with arms and ammunition entered the base. american troops left that base on october 13th. the duke and duchess of cambridge attending a launch of the national emergencies trust in london. that's a charity that will provide emergency response to disasters in the uk such as terror attacks or flooding. william spoke at the launch event. >> in talking to survivors, i've always been inspired to hear about the help they're offered by people and organizations
acting on their own initiative with immediate and heart felt compassion. this empathy is both natural and remarkable. whenever and wherever disaster strikes here in the uk, this country has a unique way of pulling together. >> you are up to date. that's the news update this hour. scott, back to you. >> sue, thank you very much. we mentioned that roku was getting rocked today. it's the worst day since late september despite an earnings beat they raised four-year guidance. jimmy, you tell our viewers, we were waiting for the numbers and your decision. what is it >> i bought more. it's a simple call, really. with you look at the growth numbers here, they're pretty spectacular. accounts were up 36% year-over-year. rpu was up 30% year-over-year. platform revenue up 79%. you compare this to digital media stocks like twitter where the monetizable users has been flat, they're ad impressions are
up over 100% year-over-year. they've got the growth. the question is why is the stock down there's some aspects of their guidance that i think people don't understand. for instance, they expect that the hours of total streaming next year will not be as high as they previously expected, but it's for very clear reason, and that is this they are now logging users off, just like when you're on your bank account online and you're not active for 30 minutes you get logged off they're going to do that with people who are streaming and go inactive for a while, they'll kick them off. that's just common sense. but that's not a reason that the stock is not doing well or that the company is fail. the company's doing extremely well. i'm adding to it. >> you've been a beast in this thing. you've really had a great ability to trade in and out of it. >> yeah. >> at what seems to be the right levels. that's the way it's going to be, you're going for more ever a trader that an owner >> on this one. >> and you've been good about holding my feet to the fire on something that's important. i say this a lot, stick to your nitting, know what you're doing. you're right. i am outside of my wheelhouse on
this. however, it's working. i feel like i've got the handle on this. hopefully i'm not saying that and tomorrow i'm eating humble pie. but i don't want compliment you. you're doing the rye thing by saying stick to your knitting, brother. >> that's what we try to do here. dueling target moves on this. let's debate weiss you were in this and then out of it? >> i traded it after the print. >> bought it after the print. >> right. made a couple of shekels and sold it. >> sold it like an hour later. >> i don't have the same commands of the company as jim does. i listened to the conference call, i just didn't like the skepticism on the part of the analysts. if it's something i did a lot of work on, had the same conviction level, fine. i was doing it as a trade with the intent if i hear something good in the call try to buy more they had decent volume trading after the -- >> no one's saying to get out of the stock. but they cut target to 150, as does guggenheim. susquehanna raises it to 150, and rbc raises it to one 60. >> the setup is the same with adobe. you had a very highly-valued
stock that was the darling of the market that get the negative commentary and that created the opportunity. i don't think this will be much different, except i have so much beta i don't have a place for it. >> i wonder if it relates in any way to the conversation that we've been having about growth at any price. this is a company that, yes, it posted a smaller than expected loss, but the operative word say loss. >> right. >> and it was a triple year-over-year. how do we deal with a stock like this >> what i thought was really interesting was that we saw the stock trade down through 114 in the premarket. maybe even lower than that. during the regular session it was down in the 116s. it popped $9 off of that. so whether you want to view that as somebody defending it or whether you want to view that as people that had not participated on this run saying, i'm going to pull the trigger and get into this thing no matter what the
commentary is here because they're buying into jim's argument, there was a lot of capital committed. you look at the volume bars into this name when it was down at 116. they flushed people out. for every buyer there's a seller, but that thing zoomed back to the upside. it's been holding 124 ever since after being at 116. >> maybe it floats right back up. but you do wonder these, you know, any high growth tech company with a high valuation posting a loss is going to be more scrutinized. and this is not going to be immune to that. it is going to be immune to it >> no. i'll tell you why. the others are or fans they don't have that much history as trading vehicles on the street. this one has a longer his troy people are more comfortable with it. i don't know i'm using the right word, but shielded somewhat. >> kudos for just being so good on it because we all have a roku
and it's like why haven't i owned this a long time ago because we all have them in our house. it reminds me of shoppa phi, they're both super high growth companies, they both sold off earlier this here and they're trying to reset will, recalibrate to find a new level where they're going to trade. but i think from a trading standpoint, it gives you lots of good opportunities to move in and out in this, you know, high-growth name. >> i want to hit twitter before we take another break. it's our call of the day. twitter downgraded to underperform at evercore. that's a sell. it went from 25 to 42. >> ju tiyou still on this. >> no. i got hit. i just wound up selling it all. i'm not a believer. we've had it years and years and it just always just misses. and i would have thought with some of the --
>> but the stock had a strong run. >> it was just enough of a turn a couple quarters ago and then stalled out. >> it was at 45 and pushing 40 six. >> came down to 45, 40, 41 it held. >> you remember in the midst of that run we -- i think i even said it, it -- the calls for dorsey to choose between twitter and square you didn't hear them anymore because the stock had done so well and the company had been performing so well. and kramer this morning was making the point that here we go, you know, this is it again. choose. choose between the two, you can't do both. and now as you're having more, you know, aparnlt issuparent is he need to choose between one or the other? >> think you only have so much brainpower and bandwidth. i thought it was a really nice research piece. i think the analysts walked through it very saliently and
mabli mathematically. i think it's interesting he cites 2018 was going to be peak margins. we heard about this yesterday, the bugs in the ad platforms. a company at that level, if this had spent less r&d -- on the flip side, snap spent 33% more r&d with half the revenue base. so is that more of an issue of jack's taking his eye off the ball but i do think the bugs in the system which he talks about in his report are a big problem. you have to execute that flawlessly and that lack of r&d spending, that cost cutting is eating into the fundamentals of the company. >> square hasn't done all that well either. that's part of the issue too. >> i think it's a bad governance situation and you only look at governance apparently when something goes wrong, whether it's we worwork or this. if he's just going to be an executive and not involved in the day to day, that's one thing. but if you're going to be the
day to day ceo, one' company's enough. >> over the last quarter, twitter down 20% and square up about 1% but making a nice outsized move today and passing twitter in market cap. i mean, they went -- you know, they've diverged now. >> they needed today's move to show a respectable 16% year-to-date. it's underperformed in the market. >> it has. and i own square, don't own twitter. by the question is, does this, you know, is it just waving good-bye to twitter because as it's market cap increases to nearly 29 billion, twitter's keeps getting eroded down. >> sorry to jump on you. you'll get more from the analyst who made the call. he'll be on power today at 2:00 p.m. for the analyst who put twitter on a sell. coming up, options bulls are making bets on fintech. we have that next in unusual activity. first let's give you a check of the s&p stek sectors before we take a break. s&p's up around 17, right up
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bullish see more upside ahead. jon najarian has that. >> this is important right here. >> take it away, jon. >> it's extremely important. >> back to our show. >> dwe do have a citigroup presentation on the 13th. is that why people were in here aggressively buying calls? i think so. at the were buying at the 105 strike. those example november 29th. as you can see a big chunk of those calls bought quickly. i bought those. i'll probably be in those till right around the 29th, but certainly through that meeting next week that citi is hosting. next one, look at fcx, because this is a large trade. they came in buying december 12 calls and we've talked about what's going on, stock's up about 8% plus today. and with what this -- with what's going on with the trade deal potentially, scott, one of the other reasons this one might be rallying.
i baht thesought these, i'll prb in these 12 calls right around a month. lastly, a quick update. mgm, talked about this one in early october, both win and mgm have been skyrocketing. this one the calls are up 300% since the time we identified it. that's mgm they were buying just out of the money calls. they went very positive for us and that's quick update. >> okay. thank you. come on back over because up next we're ready to answer your questions on ford, starbucks, fedex and more. ask halftime is coming up in two minutes. what i love most about being a scientist at 3m is that i'm part of a community of problem solvers.
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position here. the competition here is so prevalent and you go to hotel or airline websites yourself and get the prices there. so i would just stay away from this. if you own it, it's a good time to unlock tax losses against gains that hopefully you've recognized earlier in the year. >> up northwest, jon najarian, ford. you like ford here >> i do. i think one of the major uncertainties, of course, was that contract that was agreed to november 1st, scott, four-year deal. gives them plenty of visibility into the future rather than that being something that's opaque. so i like that. and i would own it here. >> okay. up next, brynn from john in tennessee. what should i do with bristol meyers as the sale gene deal is approaching? >> we own bristol-myers and told calls against it. they've had a nice run from 4557 since july they also had some successful cancer trials recently which
competes gen competes against america. you' merck. we'd hold it. >> is starbucks in a good position to open another market right now? >> no. the overall earnings were up 13%, but they had an 11% did he crease in share count, they had a 2% improvement in their tax. so basically they were a little bit light year-over-year if you take out those two factors they opened over 630 stores. the story's still a growth story, the price isn't outrageous, there's a 2% dividend. do it if you want to. i'm not on fire about it but i own it, i'm not selling. >> weiss, to you. marc in pennsylvania, think i know where youstand because yo mentioned this stock earlier if people were paying attention. mark in pennsylvania wants to know about fedex. >> i'm staying with it. it's been a great trade. it's still an historically cheap valuation. they got rid of amazon so
margins will go up. there's no reason why the stock can't go a lot higher than where it is now. >> okay. all right. more trades ahead, including qualcomm, the stock surging after earnings. first let's go to tyler matheson with a look at what's coming up on the exchange. >> let's tell you what's coming up. america's corporate debt pile is about to face potentially a massive test. and we will take a closer look at what's at stake and how it could affect you and your holdings plus, espionage on twitter. the story of how two former employees that the company became spies for saudi arabia, it's alleged. and china issues restrictions on playing video games. that's ahead in rapid fire. i'll see you then. "halftime report" right back after this.
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investing in your future called invest in you. ready, set, grow as part of our partnership with acorns. tell us about it >> obviously it's something near and dear to my heart i think b about this a lot i remember when i was in the navy, i'd go out to sea, shut hatch, konlt couldn't pay attention to roku's earnings r or twitter, but my point is that made me a long-term investor doesn't matter if you're in a submarine or deployed in the marines to the middle east or in the force, it's hard the stay on top of day-to-day things in the markets when you're doing that job b so it's important to be a long-term investor it's also important to give good advice i was a nuclear engineer i know if a neutron bombards an atom of uranium 235, it's going to split and generate a set
amount of energy that doesn't vary. you know what does the stock market for those reasons, you need a guide. find a good adviser when you come out of the military or while you're in. somebody who can help you, not only just with investing, but u getting a good credit score. these are things i talk b about on the tape and i hope our military members of whom i'm r very, very proud will watch it and find it helpful. >> proud of you. looking forward to tomorrow. we'll talk more about this tomorrow by the way, to watch jim's videos, go to b cnbc.com/inv cnbc.com/investinyou one last note. nbc ewan vuniversal come cast an acorns final trade straight ahead does your broker offer more than just free trades?
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welcome back qualcomm is surging today. there's the stock up nearly 8% >> between last quarter when the revenues were down 13%, i think they did a good job this quarter of managing expectations and last quarter of bringing down guidance and the market likes what they had to hear. we've owned the stock through thick and thin there is still licensing enfridgements, so understand the stock has a lot of china risk. >> we mentioned how the dow and
s&p have hit new intraday highs today. i wanted to go through some of the 52-week highs. walmart, bank of america, citi, jpm, u.s. bank anyone take any one of those highs since october of '18 >> i think a good one to talk about because it's so ant anticipatory of what's to come, scott. you're not buying cat at this valuation based on trailing 12 months you're buying it based on what 2020 should be if china u.s. trade relations and eu relations get repaired a bellwether for that sentiment. >> i had buy bank america. uf mystic ticket and canceled the trade. >> why >> i was hoping r for pullback i've missed it this r far. i sold the stock at 30 and 29 like a year ago so how much have i missed >> jpmorgan is the high is back
ipo. >> jpmorgan i've loved for a long time. bb&t, i own all of them and they've been very good to me it's been r hard owning them because they didn't look attractive six months ago. >> apple, all time high today. we mentioned qualcomm, sea gate. xerox obviously involved in its deal stuff, but that's just a smattering of the stocks hitting new highs. >> michael farr, good to see you. thank you for coming up from d.c. >> thank you for having me i listen to weiss, so fedex, 12.5 times earnings. 1.7% dividend. stock is down. gotten beaten up hit them where they aim. >> goldman sachs just made a new high of recentry we like the stock long-term. a third of their employees are software inniengineers. they have lot of private equity markets. changing their culture we like it as a long-term investment >> nice having you doc? >> monster beverage.
earnings after the bell tonight, but they're buying upside calls so i like that >> weiss. >> i think you should look at western digital. that got destroyed in the quarter. >> you know alfa bet, google set a new high >> see you tomorrow from d.c the exchange starts now. >> thank you very much have a wonderful program tomorrow on lowed ground at arlington. welcome to the exchange and here is what ahead. the r records keep coming. stocks at all time highs as the u.s. china announce they have reached an agreement to remove existing tariffs details are sketchy, whether this is the final piece of the puzzle that will fuel a year end rally and we have a year end rally right now. plus, the spy who tweeted me two former twitter employees are charged with spying for saudi arabia what it tells us about